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Slaves of Steel Update: |
Company Responses
The Gerdau Group decided to not indicate anyone to be interviewed and sent a statement from its communications office. Here is the complete note: "The Gerdau Group assumed the administration of Margusa in January of this year. The business already had long term contracts established for the sub-contracted supply of vegetable charcoal, a raw material for the production of pig iron. It should also be emphasized that the charge of labor rights violations was filed against a service supplying company, which does not mean to say that the Gerdau Group does not feel responsible for the problem, despite the fact that labor relations had been established previous to its operation at Margusa. For the Gerdau Group, the most simple route to resolving the situation would be the interruption of contracts. Nevertheless, this decision would result in the temporary paralyzation of the mill and the layoff of Margusa employees and of service providers who work in the region, broadening the situation of social instability. Given this reality, the Gerdau Group is changing its service providing practices and making suppliers aware of the importance of respecting labor rights and human dignity. It is a long and difficult road, the results of which are not instantaneous, but the Gerdau Group believes that only in this form will it be possible to transform the local reality. This project should be concluded within a maximum of 18 months". Queiroz Galvão The director-president of the iron manufacturers Simasa and Pindaré, André de Oliveira Câncio, denied the existence of slave labor at the charcoal furnaces. He recognized that there are labor irregularities. Câncio promised to resolve the problem: "By the end of the year we will no longer be involved with this. We are enacting the regularization of all the charcoal oeprations that provide services to the company". Câncio said that in six years the steel manufacturers will have achieved self-sufficiency in wood production, through their own forest reserves, which will avoid the relationship with illegal charcoal plants or that they cut trees without authorization from environmental agencies. He presented the social report of iron manufacturers Simasa and Pindaré, which includes 10 commitments. None is related to slave labor, although they call for sanctions for partners that use child labor. The third commitment states: "Alert its suppliers that a proven charge of child labor can cause a break off of commercial relations". Câncio said that he is personally dedicated to the creation
of the Instituto Carvão Cidadão, [Citizen Charcoal
Institute], which is his own initiative. The first declared objective
of the Institute according to its own plan is to "guide, assist
and monitor all activities related to the charcoal production chain,
including the supply of iron manufacturers in the states of Maranhão,
Pará or Tocantins; as well as its final beneficiaries; in
order to comply with labor legislation and other norms for protection
of worker safety and health, and the preservation of the work environment".
The director said that the institute would be operating by the end
of the year and will not be influenced by the iron companies.
The company responded through its press relations manager Fernando Thompson, and the president of the Vale do Rio Doce Foundation, Olinta Cardoso. Thompson stated that the group employs 60 thousand people, if service providers are included. "All have signed working papers. The Vale has a norm not only to sign working papers, but also to demand that its service providers do the same", he said. Concerning the commercial relationship with the iron manufacturers accused, Thompson clarified: "Vale is the sole producer of iron ore in the region. We have contracts and we must respect these contracts. If Vale does not sell, it can be penalized by anti-trust agencies". He said that it is not up to the company, but to the Ministry of
Labor to monitor the relationship of the iron producers with the
charcoal furnaces. "Today, it is not enough to have a quality
product at a low price. It must be socially responsible". Nucor E-mail sent by the Executive Vice President John Ferriola: "We are in receipt of your letter and appreciate the concern
that you have expressed relative to the alleged improper labor practices
in Brazil.
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This report is part of the publication "Observatório Social Em Revista" - # 6 - June 2004 - Florianópolis, Brazil English version: Jeffrey Hoff Published by Observatório Social |
